Another Tax Happy Libertard Politician In IL Wants A Transaction Tax On Traders

Discussion in 'Politics' started by rc8222, Mar 11, 2011.

  1. rc8222


    CHICAGO (Dow Jones)--An Illinois state representative has introduced a bill that would tax traders doing business in Chicago's futures, options and stock markets.
    The Financial Transaction Tax Act, introduced late last week by Rep. Mary Flowers (D., Chicago), would charge one hundredth of one percent of the value of transactions carried out on markets run by CME Group Inc. (CME) and CBOE Holdings Inc. (CBOE).
    The bill would add to heavier tax burdens borne by exchanges, brokers and traders in Chicago, which has seen its status as the "risk management capital of the world" threatened this month by a proposed merger of major European rivals.
    "This state is in dire need of new revenue," said Flowers in an interview. She said she did not know whether the idea would find support with Illinois House Speaker Michael Madigan (D., Chicago) or Governor Pat Quinn, also a Democrat. The party controls both chambers of Illinois state government.
    "I wouldn't put it out there if I wasn't willing to fight," she said. Revenue from the tax ideally would go toward defraying the state's education and health-care expenses, she said.
    The bill has yet to be assigned to a committee, where it will be looked at before the entire Illinois House of Representatives would hear it. The tax would go into effect Sept. 1.
    Representatives for CME, which runs the biggest U.S. futures-trading platform, and CBOE Holdings, operator of the busiest U.S. stock-options market, had no immediate comment.
    Patrick O'Shaughnessy, Chicago-based exchange analyst with Raymond James Financial (RJF), said he believed the bill was "very, very unlikely" to become law.
    "It would substantially disadvantage Illinois-based exchanges relative to their competitors and potentially even lead to Chicago-based exchanges re-locating," he said. "The net result would be a loss of jobs and perhaps even a loss of revenue for Illinois."
  2. The exchanges would leave in a heartbeat.

    It seems the Financial Transaction Tax (FTT) proponents haven't figured out what Sweden learned the hard way back in the 1980's. The FTT results in a net revenue decrease to the state's treasury.
  3. Lucrum


    A lot of new or increased taxes have that effect.